| A | B |
|---|
| Exemptions | Legal allowances that reduce the amount of income taxes subtracted from your gross income. |
| Tax Refund | A check returning the taxpayers money to the taxpayer after tax returns are filed and the over paid tax is determined. |
| IRS (Internal Revenue Service) | Governmental agency responsible for collecting federal taxes, issuing regulations, and enforcing tax laws |
| Dependents | A person who depends on the person being taxed for food, clothing, and shelter. |
| Local Taxes | Taxes that are paid to a local government within a state. |
| Payroll Deductions | Amounts withheld from an employee's gross pay, either required or voluntary. |
| Fringe Benefits | Any financial extras beyond the regular pay check, such as health insurance, life insurance, paid vacation and/or retirement. |
| United States Treasury Department | The government (Cabinet) department responsible for issuing all Treasury bonds, notes and bills. (branches include the IRS, U.S. Mint, Bureau of the Public Debt, and the Alcohol and Tobacco Tax Bureau). |
| Income Tax Deductions | Any item or expenditure subtracted from gross income to reduce the amount of income subject to tax. |
| Wages | An amount of money paid to an employee at a specified rate per hour worked. |
| Social Security Tax (FICA) | Tax imposed by the Federal Insurance Contributions Act and collected on employee earnings to provide retirement and disability benefits. |
| Federal Taxes | Taxes issued by the federal or national government, which must be paid in addition to state taxes in the US. This pays for highways, schools, and police. |
| Employment Benefits | A method of rewarding employees that includes virtually any kind of compensation other than wages or salaries. |
| Income | Earnings from work or investment. |
| Gross Wages | Total amount of money earned before deductions are taken. |
| Earnings | The money you make. |
| Payroll Exemptions | Determine how much is withheld from your pay for income taxes. |
| Paycheck Stub/Earnings Statement | A form attached to a paycheck that lists important information such as tax withheld, health insurance, and leave. |
| Paycheck | A form of payment to an employee. |
| Net Pay | Amount of income left after taxes and deductions have been taken out. |
| State Taxes | Taxes paid to the state, amount depends on how much you make, pays for state government activities. |
